The business rates office is the Ealing billing authority and is responsible for collection and recovery of the business rates (non-domestic rates). This duty is pursuant to The Local Government Finance Act 1988 and The Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 Statutory Instrument Number 1058.
Billing
A demand notice is issued for each financial year to ratepayers for their commercial property (hereditament), either for the entire year, 1 April to 31 March, or for part of the year depending on when liability commenced.
The demand notice is calculated on a daily charge basis and is billed in advance estimating the rates for the financial year period. The amount to pay depends on the rateable value set for a hereditament and the attributed multiplier for a financial year.
Any concern regarding a balance or liability, email the issues disputed to businessratesteam@ealing.gov.uk
Instalments
Instalments are included in each demand notice up to a maximum of 12 months depending on the date when a notice is sent. The notice is usually sent by mid-March of a financial year but if sent later or a billing begins part way through a year then the available monthly instalments correspondingly reduces in number.
Reminder notice
If an instalment is not paid by the due date, then a reminder notice will be issued. Payment for the stated amount on this notice must be paid within 7 days of issue. If it is not paid then the right to instalments is lost and the entire remaining balance remaining is to be paid within a further seven days.
Final notice
If a reminder notice is paid as required but then a subsequent instalment is not paid, the right to pay by instalments is lost and a final notice will be issued for the entire remaining balance. This final notice must be paid within 7 days.
Summons to magistrates’ court
If a reminder notice or final notice is not paid as demanded then a summons to the magistrates’ court will be issued for the entire balance remaining with additional court costs. The summons is the billing authority applying for a liability order at a court hearing.
On the granting of a liability order, this allows additional powers of recovery to the billing authority.
Disputing an application for a liability order
The billing authority needs to provide evidence that notices have been issued according to the legislation but does not need to provide evidence that the notices have been received. Defences against a liability order application are:
- the ratepayer named as liable for business rates is incorrect
- notices have not been reasonably served to a proper address
- the amount demanded is incorrect in full or in part
- the court does expect that any challenge to a summons is to be made initially to Ealing Council, so to expedite the review of the account and billing
Liability order
On acquisition of a liability order and where payment has not been arranged, the billing authority has a choice of recovery options, which are usually:
- instruction to enforcement agents (bailiffs) to recover the balance owed with addition of costs of their enforcement
- undertake insolvency action
Enforcement agents
An enforcement agent company will be instructed to recover arrears at the earliest opportunity and if necessary take control of goods.
The fees associated with enforcement agents:
- compliance stage: £75
- enforcement stage: £235 and an additional 7.5% percentage of a sum to be recovered when exceeding £1500
- sale or disposal stage: £110 and an additional 7.5% percentage of a sum to be recovered when exceeding £1500
Insolvency action
Insolvency can be one of the following, subject to County Court or High Court hearing:
- Bankruptcy Order for personal debt
- winding up and liquidation of company debt
- placing of a Charging Order on property
- insolvency action will also incur additional costs through the County Court or High Court
Payment for current and older debts
The billing authority must take action through the courts within six years of first issue of a demand notice. Once a liability order has been obtained then action can commence at any time to actively recover arrears. Recovery will continue to be pursued for current and any older years for business rates payment. There is a statutory duty to recover the billed balances to support the income and revenue budgets for Ealing Council, the Greater London Authority and Central Government.
There are a range of options to make payment or you can set up a direct debit
To contact us call 020 8825 7020 or 020 8825 5026
Telephone payment line: 020 8825 9940